Foreign funds ups the ante during four-day week

KUCHING: Foreign funds upped the ante on Bursa Malaysia during the past four-day trading week, resulting in the largest weekly foreign net inflow recorded in 22 weeks, analysts observed in the latest fund flow report.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on preliminary data from Bursa which excluded off market deals, international funds acquired RM514.8 million net of local equities last week, the largest weekly foreign net inflow recorded in 22 weeks.

Amongst the Asean markets -- Thailand, the Philippines and Indonesia, MIDF Research saw that Malaysia attracted the biggest weekly foreign net inflow.

“A marginal foreign net attrition worth RM1.1 million was seen on Tuesday as sentiment was dampened by President Trump’s move to slap a 10 per cent tariff on about US$200 billion worth of Chinese imports effective from September 24 until January 2019 when the levy is hiked to 25 per cent.

“As a result, the local bourse lost 0.6 per cent to close below 1,800 on the same day,” the research arm said.

“Nevertheless, offshore funds turned net buyers thereafter until the week ended. Foreign investors first bought RM56.5 million net on Wednesday followed by RM151.6 million net on Thursday.

“Friday was the highlight of the week as foreign net buying doubled from the day before to RM307.8 million net, the largest in a day since July 31, 2018.”

The research arm added that the risk-on mood that day was driven by Wall Street’s rally to a record high overnight combined with Beijing’s plan for a broad import tax cut for the majority of its trading partners.

MIDF Research highlighted that with five more trading days left in September, the month has so far seen a foreign net outflow of RM146 million.

Meanwhile, the year- to- date foreign net outflow from Bursa as of last Friday stood at RM8.7 billion or US$2.2 billion, which was still the second lowest foreign outflow amongst the four Asean markets the research arm monitored.

As for foreign investors, MIDF Research noted that they were more active than the retail market and local institutions as its weekly average daily traded value (ADTV) was 13 per cent higher at RM1.9 billion, the highest in 14 weeks.

“Meanwhile the weekly ADTV of the retail market and institutions both declined by more than 10 per cent but still remained above their healthy levels of RM800 million and RM2 billion, respectively.”

On top net money inflows, Digi. com Bhd registered the highest net money inflow of RM18.77 million last week, followed by Petronas Chemicals Bhd with the second highest net money inflow of RM11.05 million.

Tenaga Nasional Bhd saw the third highest net money inflow of RM6.16 million.

Looking at outflows, Public Bank Bhd saw the largest net money outflow of RM8.7 million last week.

Sapura Energy Bhd recorded the second largest net money outflow RM7.47 million during the week under review while Hartalega Holdings Bhd registered the third largest net money outflow of RM7.24 million.